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motive versus the signaling motive, we consider a gift-exchange game with three players: an employer pays wages to a worker …. We interpret this as support for the signaling motive: Indirect reciprocity is rather a byproduct of direct reciprocity …
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In the light of new theoretical and empirical work on the Permanent Income Hypothesis we tackle earlier findings for German data, which reject its validity given a large fraction of liquidity constrained consumers. Starting from a standard short run approach we do not find evidence for excess...
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